The Primary Difference Between Revenues and Gains Is

question 41

Multiple Choice

The primary difference between revenues and gains is

• A)gains are increases in net assets from peripheral activities while revenues are increases from ongoing activities.
• B)revenues increase operating income and gains have no impact on net income.
• C)revenues cause increases in net assets as a result of peripheral activities and gains cause increases through ongoing activities.
• D)gains result in an increase in operating income whereas revenues do not impact operating income.

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Definitions:

Annual Salary

The total amount of money an employee is scheduled to earn over the course of a year, excluding bonuses or overtime.

Capital Balance

The amount of money that a company has in its accounts, representing the difference between total assets and liabilities.

Net Loss

The amount by which total expenses exceed total revenues in a financial period, indicating a loss.

Operations

The day-to-day activities required for the running of a business for the purpose of producing value for the stakeholders.